Rutgers files lawsuit against Big East

Dec. 5, 2012

Written by

Keith Sargeant

@RUScuttlebutt

On Nov. 20, Rutgers announced its decision to defect from the Big East and join the Big Ten Conference. On the same day, Rutgers filed a complaint against the Big East at Middlesex County Superior Court:

Rutgers requests the court to:

- Waive the university’s obligation to abide by 27-month provision to remain in the Big East, thus permitting the Scarlet Knights to begin play in the Big Ten prior to July 1, 2015. Rutgers officials are targeting 2014-15 as the season in which it begins playing in the Big Ten.

- Waive any contractual right for the Big East to claim a withdrawal fee of $5 million or $10 million before Rutgers enters the Big Ten.

- Enter an order establishing that the Big East has breached its contractual duties by failing to pay Rutgers its share of withdrawal fees when schools such as Pittsburgh, Syracuse, TCU, West Virginia and Notre Dame defected for other conferences.

- Enter an order awarding Rutgers compensatory damages for the failure of the Big East to pay Rutgers damages caused by the loss of a home game this year against TCU.

- Compensate Rutgers for interest, attorney fees and grant all other costs and relief the court deems just and equitable.

More

ADVERTISEMENT

NEW BRUNSWICK — Forty-seven minutes before announcing its move to the Big Ten Conference in an afternoon press conference on Nov. 20, a lawyer representing Rutgers filed a lawsuit against the Big East at the Middlesex County Courthouse.

Thus began the first step in what figures to be an acrimonious split between Rutgers and the conference of which it has been a member for football since 1991 and for all sports since 1995.

In a complaint filed by David W. Field of Lowenstein Sandler Attorneys at Law, Rutgers is suing the Big East Conference in an attempt to avoid paying a $5 million to $10 million exit fee, to recover millions it claims the Big East owes in withdrawal fees and financial damages, and to begin playing in the Big Ten sooner than a 27-month obligation to its current conference.

Rutgers officials are targeting 2014-15 as the first season it will begin playing in the Big Ten. In order to do so, however, it might need the court to void a contractual bylaw to remain in the Big East until July 1, 2015, and waive any withdrawal fees.

Neither Field nor the Big East would comment on the legal matter on Wednesday. Rutgers Athletics Director Tim Pernetti declined comment, saying through a school spokesperson: “We do not comment on pending litigation.”

Upon defecting from the Big East last month, Pernetti cited increased national exposure and “immeasurable” financial gains as the reasons he engineered the university’s move to the Big Ten.

“This secures our stability in athletics forever,” Pernetti said.

Interestingly, Rutgers cited the Big East’s “instability” as a reason why it claims to have lost millions in revenue, according to the 17-page complaint.

Over a six-week period in the fall of 2011, Pittsburgh, Syracuse, TCU and West Virginia defected for other conferences, leaving the Big East in chaos. Notre Dame, which had been a Big East member for all sports other than football and hockey, defected for the ACC this year. Then, a week after Rutgers joined the Big Ten, Louisville became the sixth Big East program to join the ACC since 2003.

(Page 2 of 3)

The Big East has tried to regroup by immediately adding Temple and, for next season, bringing in Boise State and San Diego State as football-only members and Central Florida, Houston, Memphis and SMU as all-sports members. In 2014, Tulane will join as an all-sports member and East Carolina as a football-only member. Navy also will join as a football-only member for 2015.

After Miami, Virginia Tech and Boston College announced their decisions to join the ACC, the Big East implemented a $5 million exit fee in 2003 and ordered that any departing team has to provide 27 months’ notice into its bylaws.

Shortly after Navy joined, the Big East amended its bylaws on Oct. 17, 2011, to increase the withdrawal fee to $10 million. According to the Rutgers lawsuit, a provision in that amendment stated that the $10 million withdrawal fee is valid, provided that the Big East maintains its status as an automatic qualifier (AQ) into college football’s Bowl Championship Series playoff. If the conference loses that status, the withdrawal fee “shall instead be equal to $5 million.”

The claim points out that on June 26 of this year, the Presidential Oversight Committee of the BCS approved a four-team playoff to replace the current BCS playoff. As part of the new format, the Big East’s AQ status was eliminated.

As a result, Rutgers claims that the withdrawal fee was limited to $5 million as of June 26, 2012.

The Big East attempted to amend its bylaws in recognition to losing its AQ status last fall. During its presidents meeting on Nov. 13, the Big East called for a vote to increase the withdrawal fee for football schools from $5 million to $10 million.

According to the suit, Rutgers President Robert Barchi “was not in attendance and therefore did not vote in favor of the amendments.” Pernetti “voiced objection to both the procedure and substance of the proposed amendments but was not allowed to cast a vote in opposition.”

The increase to $10 million was adopted by majority vote of the Big East presidents, according to the claim.

(Page 3 of 3)

Another key part of the suit is Rutgers’ claim that the Big East’s withdrawal penalties were inconsistently applied when TCU, Syracuse, Pittsburgh and West Virginia defected. Rutgers is asking the court to order the Big East to compensate the university its share of approximately $39.5 million in withdrawal fees paid by those schools.

Additionally, Rutgers is asking for compensation from the loss of TCU on its football schedule this season.

Rutgers isn’t the first school to sue the Big East in an attempt to leave sooner than its 27-month obligation and avoid paying the exit fee. In leaving the Big East last year, West Virginia initially sued the Big East before settling by reportedly paying $20 million to exit the conference and join the Big 12 for the 2012-13 season.

In the wake of West Virginia’s settlement, Pittsburgh filed suit against the Big East and later agreed to pay $7.5 million to join Syracuse in exiting the Big East and joining the ACC for next season.

As part of its lawsuit, Rutgers is asking Middlesex County Superior Court to declare “null and void” the university’s “obligation to abide by the 27-months provision and/or payment of a withdrawal fee against Rutgers.”

The lawsuit also is asking the court to award Rutgers interest, attorney fees and “all other relief” deemed equitable.

You will automatically receive the MyCentralJersey.com Top 5 daily email newsletter. If you don't want to receive this newsletter, you can change your newsletter selections in your account preferences.